via ZANU PF ‘backtracks’ on indigenisation threats | SW Radio Africa by Alex Bell January 2, 2014
ZANU PF has appeared to backtrack on threats against foreign business owners, weeks after warning that punitive action would be taken against those who failed to hand over their businesses to ‘indigenous’ Zimbabweans.
Indigenisation Minister Francis Nhema told the AFP news service that as of News Years day on Wednesday, foreigners would not be issued with trading licenses in the ‘reserved’ sector. He said that current traders would also need to find local partners to buy majority shares in their businesses, and they have up to five years to comply with these rules.
“In some areas, they will be given four years in some areas, five. It all depends on the area and individual circumstances,” he said.
“Wherever there are problems we can always discuss and see how we can help each other. It’s all about creating employment and empowering indigenous Zimbabweans. There is no victimisation,” said Nhema.
This is contrary to the ultimatum voiced by the Secretary for Youth, Indigenisation and Economic Empowerment George Magosvongwe last November, when he told a parliamentary committee meeting that the foreigners who defied the law would be prosecuted.
“I confirm that some non-indigenous entities are still operating in the reserved sectors and there is a deadline (of) January 1 for them to comply with the requirement to relinquish their holdings in that sector…and we are putting in place measures for enforcement in the event that they do not comply,” said Magosvongwe.
Under the country’s Indigenisation and Economic Empowerment Act, reserved sectors include agriculture, transport, retail, barbershops, hairdressing and beauty salons, employment and estate agencies, bakeries, tobacco processing, advertising agencies and even arts and crafts provisions. The law requires business owners to apply for compliance certificates that are only eligible for Zimbabwean nationals.
Traders in these sectors had been left confused and concerned by the threats and ultimatums being voiced by the government, which has been steadily pushing ahead with its controversial indigenisation plans.
Economic analyst Masimba Kuchera told SW Radio Africa that Minister Nhema’s attempts to backtrack on the threats are a sign of a “reality check,” saying it was unrealistic to force a total clampdown on foreign traders.
“I also think that some of the statements from that are being made by politicians are an attempt to live up to the party’s hard line stance. I think that it’s important for there to be a reality check. Had all the foreign owners gone in a flash, there’s not enough capital for indigenous people to start shops and so on. So there would have been a bigger backlash than just allowing the foreign owners to stay,” Kuchera said.
He added: ZANU Pf is still trying to strike a balance between being hard-line and sticking to their economic blueprint, and the reality that such a stance doesn’t work under such economic conditions. It’s a question of them not wanting to be humiliated.”
COMMENTS
Bob’s other Boss (China) tugs the reigns, Bob complies.
Bob is a gutless, brainless, wimp!
Modern day Lobengula.
Do these people know what they are doing. Stupid stupid stupid. Zimbabwe is run by absolute fools
Why dont u tell him to his face?
Anyway,this indigi thing is work in progress,we will get it right
Do you have a brain murimi??????????????????? best you go for a scan dimwit.
there is a law preventing any one telling him to his face!!! I am sure a lot of people would like to…
There is even a law against asking where he is!
Wanhasi you have been getting it right for 34 years. Now look where we are
ZANU PF government must be creative and find other means to empower the indigenous people , they must create more business oportunities and involve us as the citzens of the country . The existing foreign companies which had been long operating in the country must not be part of the indigenisation process , may be it will be wise to negotiate and enforce the indigenisation process to those foreign people who want to open new businesses in the country , we have got chinese flooding into our country opening new businesses and those are the people to part of this indigenisation , ZANU PF must know where to begin with this indigenisation of theirs , simple they should open a new page for new foreign companies willing to operate in our country and they should refrain from trying to steal from the companies which had been operating in Zimbabwe serving people with employment and paying income tax .
read this so called act, there is a date cut off…
These are some that never see the light!! A work in progress, my 5 year old child could make abetter attempt than these clowns. Comply by January, 2014 and now 4-5 years to comply and that predicated on what? The size of the bribe? It was a stupid law (as are most of these new Zanu laws) designed for the elite to get rich and the country goes further down the drain.
Im not sayin the law is perfect,it has flaws which nid to be corrected,thatswhy the seeming back & forth on some of these issues
However,the law will be enforced.thats a pill u will have to swallow.
B.E.E in Rsa is fine,in Bots u have to partner with locals,thats fine too.
The devil is just in the implementation.
As for me being dim,as Mark implies,we will see who will be laughin when I buy into your company
MURIMI THE DIMWIT.You cannot create anything on your own can you?.Your thieving ways will come to nil as did the theft of the farms.There is no low people like you and the zanupf regime will stoop to , to achieve you dimwit goals.You are a disgrace!!!
buy or take?
Mark,the genius.I didnt say grab,I said BUY.Whats criminal about having money?
I worked for it
KhayaB,I know u dont like Zanu pf,but yo criticisim & analysis make sense.Im sure if you were properly”empoered” you would make meaningful contribution to our beloved country.
Buy… With what? DimWit!
Cde Mark,if I may call that,who did thoz stolen farms belong to 4 generations ago?certainly not to your grandmother!!
read your history a little more closely….
By now ZANU PF was supposed to be in a monitoring and evaluation mood.Since it won the elections overwhelmingly as it says, it is still in the planning mood.A lazy man is known for changing his hoes every day, blaming the hoes for his slow pace.By now, Ministers were supposed to be giving report backs on the following
Power ministry- Energy supply restoration, expanding capacity at Hwange
Water Ministry- clean water supply ,24 hours in all areas to rid of cholers
Education- Revamp the system and align it to economic demands
Industry and commerce- support small scale industries and stimulate exports
Agriculture-what is the food critical level? Strategic import level? Wht is the level of capital injection needed to boost production to a breakeven point, that is a point where we neither import nor export?
People of Zimbabe, my heart and other concerned people really blead when policies which empower ZANU are implemented at the expense of policies which benefit our great great grand children. Lets stop being selfish and grow beyond the mask of ZANU, MDC.We are not fixing each other, we are doing destruction to our children.Lets shape Zimbabwe, our Zimbabwe, not my Zimbabwe
@Murimi , you have got a serious problem , kindly make a difference between BEE and Indigenisation , BEE is all about empowering people from a scratch point and the government must provide the necessary resources and such opportunities to the people , eg providing out funds to start operating their own proposed businesses of which is 100% fine ,nobody is against BEE , indigenisation is about sharing with the companies (49%-51% )in other words these companies are forced to sale out 51% to the indigenous people of Zimbabwe , and this is the nonsese that we don’t favour , its like a donkey meat to us , unfortunately to you it is your only best beef stew .
@Murimi- Oh sorry my brother i almost forgot– Happy new year , this is 2014 anywhere .
Murimi wanhasi is waiting for a train that will not come, or correction ,a train that is reversing away from him.
after reading the comments from @Murimias one really has to shake their head in disbelief. It is such people in Zimbabwe who are fully empowered with apathy, arrogance, ignorance, entitlement and stupidity and continue to believe that Bob and his cronies are their “saviours”. Quite sure that @Murimi is already on the gravy train, or should I say has snout in pig trough, as the trains are broken and we know they wont be fixed by any Zim “initiative” until yet another foreign “benefactor” (read resource plunderer)pays. Dont worry @Murimi, I am sure PF will have a new T shirt ready for you by the time of the next election… they may even have a coke too, you never know!
Well i think Murimi has gone to consult for correct answers somewhere at ZPF offices , he will finally come back to us .
Don’t forget that some of the guys that come on this forum are the big fish themselves. When you have someone going agaist logic it becomes clear that the ilogical educated one has something to protect by behaving this way. The one that suffers complains. The one that beleives in a cause good or bad explains and debates. The one that cares seeks answers and enlightment.
Murimi I did have a company. I left reluctantly. You need to know that everyone has good ideas. Guess what it’s in the execution of those ideas that create a business. Guess what 95% of people never follow through because it takes guts sacrifice planning sweating borrowing sleepless nights. You want to know more of those 5% who at least get their business going 90 % will fail. So I tell you what instead of talking and stealing someone else’s hard work show us how you do it and shows your success. If you succeed you tell us then if you are prepared up give 51% away to someone you do not even know. Once you have done all this then we will respect you. At this point my friend you have no clue what it takes.
@Doctor,Khaya,Joe etc Happy New Year.
Now,u hav to understand the seasons,its raining,so Murimi will be in the fields,away from the wi-fi.(not with a hoe,thank u)
Pliz note that the govt said anyone who is gettin the 51% will have to pay for it.Call it grabbing,but with compensation if u wish.
The law of the land is final.U might not like it,but its here to stay.Instead of fighting it,make full use of it.No amount of noise will change it.Is the law fair,does it follow natural justice?maybe,maybe not,but a lot of things r not fair ,including colonialism & apartheid(which still exists in the s.a economy)
I am an astute businessman,with or without the party.
How many Zimbabweans can afford to raise money to buy 51% shares into any company? Truth of the matter is with a country in the situation that Zimbabwe is in you need investment with sensible conditions. I.E. allow foriegn companies to operate on conditions that will bennifit the disadvantaged majority. They must not be allowed to bring in foriegn labour. They must not be allowed to bring in people that have skills that are avalable in the country. A company that hires Any expats because of a shortage of of that skill must train a local in that area. Tax breaks for companies training locals in crucial skills.
@Doc,u make valid points,but im sure u r aware that Zim has been demonised so much that its difficult to attract foreign investments,except the chinese ,of wh om I have my reservations.
So instead of waitin for a day that will not come(look @ US-Cuba sanctions) lets get local investment into these companies,coz(comin to yo question) people in Zim do have money.A lot.Its just not in the system.If any company makes a public offer,see how over subscribed it will be.
Those cars congesting our roads r not being bought on credit remember.
Im not sayin we dont need foreign investment,butwhile they r twiddling their thumbs waitin for Mdc to rule,we r taking the initiative.
Solutions are needed for the vast majority and there is no Economy that can have the majority running businesses. The Indeginisation will not benefit the POVO (people of various opinions). It will benefit those that can afford to buy these shares. Zanu pf and Zapu pf were supported by the very same people who are now suffering. When do they receive their reward? All they ask for is a job where they can earn some money to shelter, educate and feed they families.
All they want is the corruption and the fighting to stop. All they want is clean drinking water. All they want is to be heard. This forum gives an opportunity to a few to speak for the rest who cannot speak for themselves because they cannot afford Internet and they dare not express their opinions in any paper for obvious reasons. When the powers that be recognized that these basic things are the things that empower people the healing will begin
Murimi. You have not answered my proposal. Start your own company. The playing field has been even for 33 years. Apart from strive Masiwa who else has had a successful company. Pray tell us all. Unless you do something and create, all you are is hot talk no action. Making a law that is stupid and contrary to logic does not make it right. You have already failed as you do not want to take up the challenge of doing something yourself. You want to covert only. This is my last comment because arguing with a fool has no limits.
Joe I have been following this conversation with interest. The Doctor is right. Murimi wanhasi is seeking enlightenment. That’s why he attacks and withdraws. Or maybe (I APOLOGIZE DOCTOR) @ Murimi is having psychotic episodes.
I am very very confused here. Having read hundreds of these “Zimbabwe Situation” articles I have come to the conclusion that “all” indigenous black Zimbabweans are clueless as to how a business is run; that the majority of them are corrupt; that the majority if them are totally reliant on the white man to make things work or keep the economy ticking over; that the majority of them are absolutely clueless when it comes to farming – proof is in the pudding with the Country importing all it’s grain every year from white farmers in neighboring Countries; that you all have gone backwards 100 years re your economy; that you no longer use heavy equipment on the farms or in the mines, preferring ox drawn ploughs on the farms and mining with shovels and picks instead…. I pose this question because from what I have seen in Africa you are all the same… Just generally bloody useless to put it very mildly… There is absolutely no hope for you people. I’ll wait a few years for rich pickings in Zim… We refer to it as re- colonization.
to hell with u Dave….if u were black and in Zim,u culd have been in Zanu PF